ZFX: US-China tension was escalated, offseted the hopes of economic recovery
The fears of the China-US relation deterioration turned on the “risk off” mode. Even though some of the economic figures were positive to the stock markets, the three major Wall Street indexes edged lower on Thursday.
ZFX analyst Jacob Leung said that, market sentiment changed to bearish. Some of the investors believe that the worst has passed, while some of them are still doubtful.
On Thursday, Gold price fell more than 1% to around $1717 level. The recent economic figures of Europe and the US showed that “the worst has passed”, lowering the safe-haven demand. Investors may pursue profit-taking before weekend, dragging down the gold market. However, the growing China-US tensions may still be one of the key concern in the financial market. The uncertainty is still a big bullish factor of the gold market in the coming days.
ZFX analyst Jacob Leung said that, today to next week, we need to closely monitor the news regarding the tension between China and the US, as it could be quite negative which can dominate the financial market. Gold price, RMB and the Wall Street may be very volatile.
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